Medical Equipment Lifecycle – Management & Support
In previous newsletters we discussed the importance of capital equipment inventories for healthcare facilities of all sizes. Keeping proper records of incoming and outgoing equipment involves accountability, control, and accurate documentation of capital assets. Hospitals should have policies and procedures clearly define how assets enter the facility and how assets leave the facility. This process should be applied to the accounting ledger and updated accordingly.
Asset reconciliation is the process of recording the differences between assets that are physically located in the property and assets that are listed on the fixed asset accounting ledger. A major component of any audit is cross-referencing data collected during a physical inventory with the facilities’ accounting asset ledger.
In order to make the reconciliation process easier, be sure that data captured from the physical audit is as descriptive as possible. Identify the location, department, asset description, manufacturer, model, current asset number, and serial number of each asset so it can be cross referenced with assets currently on the hospital ledger. Many hospitals choose to implement bar code technology to tag each asset. Bar coding provides a detailed snapshot of equipment, and will help make future reconciliations easier.
Reconciling the ledger provides a clean picture of assets located in the property. This information can positively impact a few different areas for the facility:
- Keeping the asset ledgers up to date will help your business make sound decisions on equipment that may need to be replaced.
- Reconciliation provides savings when removing ‘ghost assets’ from the books. This will eliminate insurance payments paid on assets that are no longer physically on the property.
- Reconciliation supports financial, risk and compliance management solutions.
- Allows the Accounting Department to accurately associate physical assets with cost centers for each department.
- The CFO to properly develop operating and capital budgets based upon an accurate and current ledger.
- Fixed asset records should be continuously updated as equipment enters or leaves the property.
Reconciliation is typically associated with a physical inventory project. Once the assets have been identified and the ledger is accurate it is recommended that facilities conduct spot checks throughout the year and consider reconciling the ledger every 1-2 years. This will ensure clean data that can be leveraged by the hospital.
MRG Recent Projects:
Equipment Resale Management Service:
MRG recently completed a resale project for an Ohio health system that involved the sale of six GE/Datex Ohmeda anesthesia machines. This sale generated revenues over $60,000.00+.
MRG Thanksgiving Fun Facts:
Who doesn’t prefer white meat?!?
Since white meat is in fact the most popular part of the turkey, today’s poultry has been bred to have huge breasts. As a result, these top-heavy birds are no longer able to mate naturally. The majority of hatcheries now use artificial insemination to fertilize the eggs of the domestic turkey.
Manage Resource Group, Inc. is a privately owned healthcare equipment management company headquartered in Berea, Ohio. Our client focused services create strategies for each customer to increase profitability on capital equipment. We are industry experts offering the following service lines:
- Inventory services
- Appraisal services
- Resale management